IFC proposes $150m loan for Indonesia’s Finansia Multi Finance

International Finance Corporation (IFC), a member of the World Bank Group, is considering a proposal to extend a loan package of $150 million to Indonesian non-banking finance institution (NBFI) Finansia Multi Finance.

In a pre-investment disclosure, IFC said the package will comprise of senior loans committed in tranches to support Finansia’s lending programme to middle-low income households and MSMEs.

The proposed loan will have a three to five-year tenure. Such funding, according to IFC, is not readily available to Indonesian NBFIs given the impact of the COVID-19 situation on market liquidity.

Finansia focuses on providing financing to micro and small entrepreneur/businesses, with motorcycles or cars as collateral. As of December 2019, the company’s total assets stood at around $245 million, with equity of around $41 million.

The firm is 80-per cent owned by KB Kookmin Card, the second-largest credit card issuing company in South Korea. KB Kookmin Card completed the stake acquisition in July 2020.

IFC said Finansia’s lending programme will “bridge the financing gap for the bottom-of-pyramid entrepreneurs” who raised working capital by collaterising their vehicles.

The lending will also provide “funding support to their customers’ operating cash flow to promote jobs as well as broader stability during COVID-19,” IFC added.

IFC said on its website that it is providing $8 billion in fast-track financial support to existing clients to help sustain economies and preserve jobs during this global crisis, which will likely hit the poorest and most vulnerable countries the hardest.

Its COVID-19 response fundings include $35 million to Bangladesh Prime Bank and $40 million to City Bank, $25 million to Cambodia’s Hattha Kaksekar Limited, $150 million to Vietnam Prosperity Joint Stock Commercial Bank, $35 million to India’s JK Paper, and $150 million to China’s Muyuan Foods.

In May, IFC proposed a $5-million equity investment in Indonesian insurtech startup Pasarpolis. It also recently proposed to extend up to $120 million in a loan facility to LOGOS Property Group Ltd’s subsidiaries, which are located in Indonesia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.